For the most part it did answer the question but it seems to go a long way to avoid making it a successful experience. It does not tell how to name the contact list nor does it tell you how to find it again after you create it. Ther are at least three situations where New Items/ More Items where you do not see "Contact Group". A lot of guessing and frustration happens due to the lack of a few clarifications.

I suspect that this was designed by the same people who decided to use dim gray on white for the e-mail addresses in the Favorites List.

I give 1 point to MS for supplying the answer but take away 2 points for poor design.